TEXAS PROMULGATED CONTRACTS ACTUAL STUDY GUIDE
2025/2026 QUESTIONS WITH ANSWERS GRADED A+
✔✔What rule in contract cases prevents a party to a written contract from presenting
oral evidence that contradicts or adds to the written terms of the contract that appears to
be whole? - ✔✔parol evidence
✔✔How long is the statue of limitation in Texas, written and verbally? - ✔✔4 years
written
2 years oral
✔✔Discharge of a Contract - ✔✔Black's Law Dictionary defines "discharge" as to
release; liberate; annul; unburden
✔✔If a buyer or seller should breach a contract (meaning break a contract), the other
party has three choices to remedy the situation: (3) - ✔✔specific performance
Specific damage
termination
✔✔Are licensee prohibited from practicing law or give legal advice? - ✔✔false
✔✔Can Licensees disclose pertinent facts - ✔✔true
✔✔unilateral mistake - ✔✔is such an error that is held by only one party and not shared
by the other party.
✔✔On the other hand, if the other party was not aware of the mistake, the contract can
usually be - ✔✔reformed (rewritten).
✔✔If the non-mistaken party knows that the other party has made a unilateral mistake,
the result is usually contract - ✔✔rescission (cancellation).
✔✔Broker-Lawyer Committee's purpose - ✔✔is to DRAFT and revise contracts and
forms for use by licensees.
✔✔Broker-Lawyer Committee is made up of _______ lawyers appointed by the
______________________and ______ real estate brokers appointed by
_________________
There is also _____ public member who is appointed by the ______ - ✔✔6; president of
the state bar of Texas; 6; tX RE Commission; 1; govenor
,✔✔- What is an error in the meaning of words, laws, or facts which causes one or both
parties to enter into the contract without fully understanding the outcomes or
responsibilities implied by the contract? - ✔✔mistake
✔✔1-4 FAMILY RESIDENTIAL RESALE CONTRACT: what is detailed in Paragraph 1
and 2 and 2D - ✔✔Paragraph 1: Legal name followed by comma with martial status
Paragraph 2: legal description
Paragraph 2D: Paragraph 2.D items that seller to keep and not sell with the property
✔✔1-4 FAMILY RESIDENTIAL RESALE CONTRACT: what is detailed in Paragraph
3A,B,C and 4 and5 - ✔✔3A: down payment
3B: loan amount
3C: Sales price (total of 3A & 3B)
4: LICENSE HOLDER DISCLOSURE
5: EMD
✔✔1-4 FAMILY RESIDENTIAL RESALE CONTRACT: what is detailed in Paragraph
6A,B,C(1-3),D,E(1-3) - ✔✔6. TITLE POLICY AND SURVEY
6A: who is paying for title policy
6.B discusses the title commitment
6.C.1 states that the owner will provide the survey and an affidavit that the survey is
correct.
6.C.2 states that the buyer will pay for a new survey.
6.C.3 states that the seller will pay for and furnish a new survey to the buyer.
6.D gives the buyer the right to object to certain items but not others.
Paragraph 6.E.1 Abstract or Title Policy relates to the fact that the broker must tell the
buyer to have a title policy or if the buyer insists on an abstract (history of title) that the
abstract is examined by an attorney.
6.E.2 HOA
6.E.3 discusses Statutory Tax Districts. Also known as Municipal Utility Districts (MUD),
these are water and sewer providers that are not owned by the city
✔✔Using a TREC promulgated purchase agreement, who is required to pay for the title
insurance? - ✔✔ITS negogiable
✔✔Which of the following is true?
An REO company can require a buyer to use a specific title company.
Any seller can require a buyer to use a specific title company.
A national bank can require a buyer to use a specific title company.
A seller that has agreed to pay for the title policy can require a buyer to use a specific
title company. - ✔✔A seller that has agreed to pay for the title policy can require a buyer
to use a specific title company.
, ✔✔What is the difference between a title policy and a title commitment? - ✔✔A title
commitment is issued prior to closing to describe the items on the title policy which will
be issued after closing.
✔✔What is a disclosure statement by the seller that no changes have been made on
the property that could affect the survey? - ✔✔affidavit
✔✔Due ton tranfer fee being illegal, where can a transfer fee be charged? - ✔✔law
does not prevent a home owner's association from charging a transaction fee each time
a new member buys a property in their area.
✔✔A person receiving transfer fee must accept payment by the _____ day after the
payment is made, then the payment must be returned to the person who paid the fee
and the fee is void from that point on. - ✔✔30th
✔✔What is the fee that is charged every time a property changes hands? - ✔✔transfer
fee
✔✔According to the TREC promulgated purchase agreement, who is responsible for
having the utilities turned on? - ✔✔seller
✔✔According to the TREC promulgated purchase agreement, who is required to pay for
lender-required repairs? - ✔✔neither one
✔✔1-4 FAMILY RESIDENTIAL RESALE CONTRACT: define paragraph 9, 10, 11 -
✔✔Paragraph 9 is the closing or consummation of the transaction.
10. transfer of occupancy
11. special provisions
✔✔1-4 FAMILY RESIDENTIAL RESALE CONTRACT: define paragraph 7 - ✔✔deals
with the condition of the property and property inspections, including the seller allowing
the buyer to inspect the property at reasonable times, disclosures, completion of
repairs, environmental matters, and residential service contracts.
✔✔1-4 FAMILY RESIDENTIAL RESALE CONTRACT: define paragraph 8 -
✔✔addresses the fact that commission agreements and broker fees are all addressed
in separate written agreements.
✔✔1-4 FAMILY RESIDENTIAL RESALE CONTRACT: define paragraph 12 , 13, 14 -
✔✔Paragraph 12 deals with settlement and other expenses. It spells out the buyer's
and the seller's expenses.
2025/2026 QUESTIONS WITH ANSWERS GRADED A+
✔✔What rule in contract cases prevents a party to a written contract from presenting
oral evidence that contradicts or adds to the written terms of the contract that appears to
be whole? - ✔✔parol evidence
✔✔How long is the statue of limitation in Texas, written and verbally? - ✔✔4 years
written
2 years oral
✔✔Discharge of a Contract - ✔✔Black's Law Dictionary defines "discharge" as to
release; liberate; annul; unburden
✔✔If a buyer or seller should breach a contract (meaning break a contract), the other
party has three choices to remedy the situation: (3) - ✔✔specific performance
Specific damage
termination
✔✔Are licensee prohibited from practicing law or give legal advice? - ✔✔false
✔✔Can Licensees disclose pertinent facts - ✔✔true
✔✔unilateral mistake - ✔✔is such an error that is held by only one party and not shared
by the other party.
✔✔On the other hand, if the other party was not aware of the mistake, the contract can
usually be - ✔✔reformed (rewritten).
✔✔If the non-mistaken party knows that the other party has made a unilateral mistake,
the result is usually contract - ✔✔rescission (cancellation).
✔✔Broker-Lawyer Committee's purpose - ✔✔is to DRAFT and revise contracts and
forms for use by licensees.
✔✔Broker-Lawyer Committee is made up of _______ lawyers appointed by the
______________________and ______ real estate brokers appointed by
_________________
There is also _____ public member who is appointed by the ______ - ✔✔6; president of
the state bar of Texas; 6; tX RE Commission; 1; govenor
,✔✔- What is an error in the meaning of words, laws, or facts which causes one or both
parties to enter into the contract without fully understanding the outcomes or
responsibilities implied by the contract? - ✔✔mistake
✔✔1-4 FAMILY RESIDENTIAL RESALE CONTRACT: what is detailed in Paragraph 1
and 2 and 2D - ✔✔Paragraph 1: Legal name followed by comma with martial status
Paragraph 2: legal description
Paragraph 2D: Paragraph 2.D items that seller to keep and not sell with the property
✔✔1-4 FAMILY RESIDENTIAL RESALE CONTRACT: what is detailed in Paragraph
3A,B,C and 4 and5 - ✔✔3A: down payment
3B: loan amount
3C: Sales price (total of 3A & 3B)
4: LICENSE HOLDER DISCLOSURE
5: EMD
✔✔1-4 FAMILY RESIDENTIAL RESALE CONTRACT: what is detailed in Paragraph
6A,B,C(1-3),D,E(1-3) - ✔✔6. TITLE POLICY AND SURVEY
6A: who is paying for title policy
6.B discusses the title commitment
6.C.1 states that the owner will provide the survey and an affidavit that the survey is
correct.
6.C.2 states that the buyer will pay for a new survey.
6.C.3 states that the seller will pay for and furnish a new survey to the buyer.
6.D gives the buyer the right to object to certain items but not others.
Paragraph 6.E.1 Abstract or Title Policy relates to the fact that the broker must tell the
buyer to have a title policy or if the buyer insists on an abstract (history of title) that the
abstract is examined by an attorney.
6.E.2 HOA
6.E.3 discusses Statutory Tax Districts. Also known as Municipal Utility Districts (MUD),
these are water and sewer providers that are not owned by the city
✔✔Using a TREC promulgated purchase agreement, who is required to pay for the title
insurance? - ✔✔ITS negogiable
✔✔Which of the following is true?
An REO company can require a buyer to use a specific title company.
Any seller can require a buyer to use a specific title company.
A national bank can require a buyer to use a specific title company.
A seller that has agreed to pay for the title policy can require a buyer to use a specific
title company. - ✔✔A seller that has agreed to pay for the title policy can require a buyer
to use a specific title company.
, ✔✔What is the difference between a title policy and a title commitment? - ✔✔A title
commitment is issued prior to closing to describe the items on the title policy which will
be issued after closing.
✔✔What is a disclosure statement by the seller that no changes have been made on
the property that could affect the survey? - ✔✔affidavit
✔✔Due ton tranfer fee being illegal, where can a transfer fee be charged? - ✔✔law
does not prevent a home owner's association from charging a transaction fee each time
a new member buys a property in their area.
✔✔A person receiving transfer fee must accept payment by the _____ day after the
payment is made, then the payment must be returned to the person who paid the fee
and the fee is void from that point on. - ✔✔30th
✔✔What is the fee that is charged every time a property changes hands? - ✔✔transfer
fee
✔✔According to the TREC promulgated purchase agreement, who is responsible for
having the utilities turned on? - ✔✔seller
✔✔According to the TREC promulgated purchase agreement, who is required to pay for
lender-required repairs? - ✔✔neither one
✔✔1-4 FAMILY RESIDENTIAL RESALE CONTRACT: define paragraph 9, 10, 11 -
✔✔Paragraph 9 is the closing or consummation of the transaction.
10. transfer of occupancy
11. special provisions
✔✔1-4 FAMILY RESIDENTIAL RESALE CONTRACT: define paragraph 7 - ✔✔deals
with the condition of the property and property inspections, including the seller allowing
the buyer to inspect the property at reasonable times, disclosures, completion of
repairs, environmental matters, and residential service contracts.
✔✔1-4 FAMILY RESIDENTIAL RESALE CONTRACT: define paragraph 8 -
✔✔addresses the fact that commission agreements and broker fees are all addressed
in separate written agreements.
✔✔1-4 FAMILY RESIDENTIAL RESALE CONTRACT: define paragraph 12 , 13, 14 -
✔✔Paragraph 12 deals with settlement and other expenses. It spells out the buyer's
and the seller's expenses.
